Salary Insurance In UAE
Introduction
Life has many layers of occurrences to unveil, and we don’t know whether these happenings will be in our favour or not. So, it becomes essential for us to secure our family’s future with all the crucial aspects. Through this, if we somehow face any disgraceful phase of life like accidents, our family will be safe with good financial support. This is possible with the beneficial features of salary protection insurance.
You can prefer this plan to invest in as it delivers the choice of claiming benefits in the form of regular income payout in case of your unfortunate demise. It is evident that we mostly strive to give all the support to our loved ones. So, why not help them with salary insurance in the UAE when we are not around? Let us learn more about this beneficial plan.
What Is Salary Protection Insurance?
Salary protection insurance is also tagged as income protection insurance. It is a worthy type of insurance policy effectively curated to deliver financial support to your loved ones in the event of your absence. It replaces your regular income and makes sure your family is functioning well with their financial obligations and continuing with a better living standard. For salary protection insurance, you have to decide how you want to split the total sum assured amount between the two components, i.e. lump sum and regular income.
The insurance policy with regular income payment availability is a reliable option for individuals who have not experienced any investors or want to acquire minimal but guaranteed profits. But you need to remember that this term policy consists of no incentives for maturing. If the policyholder passes away, the insured lump sum will be paid to the nominee effectively.
Why Do You Need Salary Protection Insurance in the UAE?
UAE has leveraged a series of opportunities for the people who want to secure their future with utmost stability. Starting from its infrastructure to global businesses, everything can be experienced within this efficient land. However, only securing a job here is not enough. You have to prioritise your family’s financial security as well. A salary protection insurance in UAE can be your essential safeguard that will ensure your family is getting a steady income even if any unfortunate circumstances have restricted you from working.
Become Financially Stable During Medical Emergencies
If you are facing any sudden medical emergencies and it is preventing you from working, the protection insurance will make you receive a certain portion of your income. This way your family can easily manage the expenses.
Peace of Mind
In the recent scenario, the trend of layoffs is at its peak. So, losing your job in an unknown country can be devastating. With the help of salary protection insurance, you will have that financial support while you strive for new opportunities.
Be Compliant with UAE Regulations
The government of UAE has made it mandatory for all its employees to conserve some type of salary protection due to the introduction of the Unemployment Insurance Scheme. So, unexpected job loss will not hinder you at any cost.
Types of salary protection insurance available in the UAE
There is a series of income protection insurance plans available in the UAE. The following types will protect the individuals and their families from different types of unforeseen circumstances that can adversely impact their earning capacity.
Disability Insurance
This type of insurance delivers a lump-sum payment if an individual is facing permanent total disability due to any illness or accident. The amount is considered as the inception of the policy and you can use it for medical expenses, living expenses, etc.
Income Protection Plans
The following plan will provide you with a regular income if you are completely unable to work because of some injuries or illness. This type will cover a certain percentage of your income until you come back to work, retire, or in the event of your uncertain death.
Employee Protection Insurance
As per the UAE’s Ministry MOHRE regulations, employees are bound to provide their bank guarantee or have some insurance schemes. The following insurance type covers around AED 20,000.
How much coverage do I need for salary protection insurance?
The amount of coverage you are planning to acquire should completely fulfil your financial obligations. Moreover, you have to also assess your lifestyle before choosing the best income protection insurance. Here, we have listed some factors you need to prioritise beforehand.
Assess your monthly income
When you prefer any salary insurance UAE policy, make sure to opt for the monthly income that will be sufficient for your family members in your absence. The chosen amount should be less or equal to your current salary.
Opt for the duration
Now, you have to analyse how long you want this policy to be effective. You need to understand that the premium you pay will be based on the length of your opted policy.
If the policyholder passes away, the beneficiaries will have the opportunity to acquire the amount. The salary insurance will pay the death benefit as per the remainder of the following policy term.
Eligibility Criteria to get income protection coverage
Before applying for online income protection insurance, it is important for you to be aware of its eligibility criteria and the required documents. If you do not fall under certain criteria, you cannot access the policy.
| Eligibility Criteria | |
|---|---|
| Criteria | Limitations |
| Age Limit | 18-64 years old |
| Employment Status | Must be a full-time, part-time, or self-employed individual |
| Income Requirement | Must have a stable source of income |
Documents Required
Identity proof like Passport, DL, etc.
Pay slips of the last 3-6 months.
Tax returns or financial statements.
Employer’s letter with authentic employment status.
Medical records.
Bank Statements.
Benefits of income protection insurance
Here you can go through some important benefits behind income protection coverage. The following insurance will cover you with a lot of advantageous factors in your problematic situations.
It protects your quality of Life
If you are the primary earner of your family, then Income Protection Insurance can help you to a vast extent. It can effectively fulfil your family’s needs. In the case of any kind of untimely circumstances, your family can continue with their standards of living like before.
Inflation Protection
Inflation generally heightens the cost of services and goods. This indicates that you can buy minimum items with the same range of money in the future. It is important for you to retain the value of your money in the future by opting for a plan.
Coverage of your debts
Many people must take out loans for their car, home, etc. So, in your absence, your family may feel the burden to repay the debt on time. So, with the help of salary protection insurance, you can get immediate payouts and settle your debts. So, there will be no worries for your family.
What is the difference between life insurance and income protection?
Most people get confused between life insurance and income protection. So, for your reference, life insurance is known to be a protection for the following term of the insurance cover. If the policyholder passes away due to some unforeseen circumstances during the policy term, the insurance company will provide the lump sum to the beneficiaries.
On the other hand, in income protection, you have to pay the premium every month. If you are injured or become ill and are unable to work, you can claim the money and receive the monthly income.
How to Buy Income Protection Insurance?
To acquire the best income protection insurance, you need to follow the steps below:
You need to research the best insurance providers and compare their policies to see if they meet your requirements or not.
Get reliable quotes from various providers to pick the cost-effective ones.
Now, fill out the application form that includes data regarding your health, income, and occupation.
If the insurer insists, go for a medical evaluation.
Once the insurance company approves, you will get the policy outlining along with its terms and conditions.
Pay the premium on time to keep the policy active and efficient.
Frequently Asked Questions on Salary Protection Insurance
Can I purchase salary protection insurance online?
Yes, you can easily purchase salary protection insurance online by filling out the application digitally.
What is the new rule for employee insurance in the UAE?
The government of UAE has made it mandatory for employees to acquire health insurance.
What is the protection of employees in the UAE?
The UAE has been providing many protections to employees that involve health insurance, paid leave, legal support, and much more. It also has laws against forced labour and discrimination.
Is employment insurance mandatory in the UAE?
Yes, the government of UAE has made it mandatory for employees to get their employment insurance with a certain amount.
How long does it take to get approved for salary protection insurance?
The time taken to get approvals for salary protection insurance solely depends on the policy and the circumstances of the claim. If the policies are a bit expensive, the waiting periods will be comparatively shorter.
Can I customise my salary protection insurance policy?
Yes, you have access to customise your salary protection insurance by opting for the monthly income and policy duration.
How much does salary protection insurance cost in the UAE?
The cost of salary protection insurance in the UAE depends on several factors, such as your salary, the policy you prefer, and your personal circumstances.
Are there any exclusions or limitations in salary protection insurance policies?
Yes, there are some exclusions in salary protection insurance policies like self-inflicted injuries, pre-existing medical issues, criminal activities, elective surgeries, etc.
Disclaimer: The information presented here is gathered from trusted sources on the internet. We make every effort to ensure accuracy and reliability, and we encourage readers to cross-check information with official sources and use their discretion when relying on it.